As the statistics reveal, over 1 million people file for bankruptcy every year in the US. Bankruptcy is not at all a lucrative debt relief option but some people do not stand to have any other choice.
Bankruptcy offers a few options to debtors. One of the most commonly preferred choices is Chapter 13. Basically, by applying under the code of chapter 13, a debtor gets to keep his property and pays back a part or whole of his total debt over a time period of 3 to 5 years. This option of bankruptcy is also referred to as ‘reorganization bankruptcy’. This article would throw light on some of the basic features of Chapter 13.
- One of the most striking features of Chapter 13 is that it prevents foreclosure of a house. it allows a person to cover up for the missed mortgage payment and thereby stop a foreclosure.
- Another major benefit of applying for bankruptcy under Chapter 13 is that it stops creditors from harassing a debtor with calls and other means. A debtor gets to avail protection from creditors and other money collecting agencies.
- This bankruptcy option helps a person to get into the hang of a life that is properly maintained in regards of finances. This option demands a debtor to lead a strict life during the time span. It inculcates discipline in a debtor and helps him to make it a habit of staying within an organized financial budget.
- This bankruptcy option allows debtor to avail some more time to pay off his debts. This is another advantage. People can get some more time to organize their finances.
So, who all can apply for this option? Well, there are a few exceptions here. Chapter 13 is not meant for all. A person who does not have a steady income source cannot possibly opt for option. This alternative requires a person to prove his ability to pay debts after certain period of time. People, who have too huge debt burden than their income amount, cannot opt for this option.
If you find yourself eligible for applying under Chapter 13 code of bankruptcy, you must consider hiring a specialized bankruptcy lawyer who can help you in handling your case under the regulations of Chapter 13. Hamilton, NJ has a number of reputed law firms that are known for their specialized legal services.
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